Tip of the iceberg? Rs 50 crore fraud uncovered in small Kerala co-op bank
- The auditor found that a single account in the branch had a Rs.38.64 crore negative balance!
- The bank disbursed gold loans to the tune of Rs. 8.17 crore, without taking the gold deposit as surety.
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Barring the single BJP member in Kerala Assembly, all legislators voted against the Central Government and the Reserve Bank of India for allegedly trying to destroy the cooperative banks in the state. The political parties vehemently opposed the charges that the cooperatives were used for money laundering. It remains debatable whether the cooperatives are safe havens where local politicians park black money. But if the latest report on the irregularities at a small branch of a cooperative bank in Alappuzha is any indication, things are not in a good shape.
When the auditor examined 40% of the account details in one branch of a Cooperative Bank at Mavelikkara in Alappuzha, she unearthed irregularities to the tune of Rs. 50 crores! This happened in Kerala where Left and the Right wing parties vehemently oppose the implementation of the regulations put forth by the Reserve Bank of India, declaring that everything was perfect with the cooperative banks.
The auditor found that a single account in the branch had Rs.38.64 crore minus balance! The bank disbursed gold loan to the tune of Rs. 8.17 crores, without taking the gold deposit as surety. Loans worth 3.54 crores were disbursed without any documents. A series of irregularities were unearthed in the examination and a report was presented to the officials by the auditor.
The cooperative department officials were quick to respond. The auditor was transferred to Kollam district within no time! The bank secretary also submitted a report on the irregularities to the governing body controlled by the Congress party. This time, the response was unexpected. A gang of unidentified men attacked the houses of the auditor and the bank secretary who reported the irregularities to the higher authorities!
But the paradox is that even after a cursory examination of accounts in one of the ten branches of the bank brought out fraud to the tune of 50 cores, the governing body and the opposition are least bothered. The political parties are silent on the irregularities, and they don't want a further probe.
